BILL NUMBER: AB 2228 CHAPTERED
BILL TEXT
CHAPTER 845
FILED WITH SECRETARY OF STATE SEPTEMBER 24, 2002
APPROVED BY GOVERNOR SEPTEMBER 24, 2002
PASSED THE ASSEMBLY AUGUST 22, 2002
PASSED THE SENATE AUGUST 19, 2002
AMENDED IN SENATE AUGUST 5, 2002
AMENDED IN SENATE JUNE 19, 2002
AMENDED IN ASSEMBLY MAY 9, 2002
AMENDED IN ASSEMBLY APRIL 23, 2002
AMENDED IN ASSEMBLY APRIL 11, 2002
INTRODUCED BY Assembly Member Negrete McLeod
FEBRUARY 20, 2002
An act to add and repeal Section 2827.9 of the Public Utilities
Code, relating to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 2228, Negrete McLeod. Public utilities: net energy metering.
Under existing law, electric service providers, as defined, are
required to provide eligible customer-generators with net energy
metering, as defined.
This bill would require electrical corporations, as defined, to
provide eligible biogas digester customer-generators with net energy
metering, as defined, under a pilot program. The bill would define
an "eligible biogas digester customer-generator," in part, as a
customer of an electrical corporation that uses a biogas digester
electrical generating facility, as defined, with a certain capacity
that is located on or adjacent to the customer's premises, is
interconnected and operates in parallel with the electric grid, and
is sized to offset part or all of the customer's own electrical
requirements and that receives certain funding. The bill would
prescribe conditions under which these customers may participate in
the pilot program established by the bill.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2827.9 is added to the Public Utilities Code,
to read:
2827.9. (a) (1) The Legislature finds and declares that a pilot
program to provide net energy metering for eligible biogas digester
customer-generators would enhance the continued diversification of
California's energy resource mix and would encourage the installation
of livestock air emission controls that the State Air Resources
Board believes may produce multiple environmental benefits.
(2) The Legislature further finds and declares that the net energy
metering pilot program authorized pursuant to this section for
eligible biogas digester customer-generators, which nets out
generation charges against generation charges on a time of use basis,
furthers the intent of Chapter 7 of the Statutes of 2001, First
Extraordinary Session, by facilitating the implementation of energy
efficiency programs in order to reduce consumption of energy, reduce
the costs associated with energy demand, and achieve a reduction in
peak electricity demand.
(b) As used in this section, the following definitions apply:
(1) " Electrical corporation" means an electrical corporation, as
defined in Section 218.
(2) (A) "Eligible biogas digester customer-generator" means a
customer of an electrical corporation that meets both of the
following criteria:
(i) Uses a biogas digester electrical generating facility with a
capacity of not more than one megawatt that is located on or adjacent
to the customer's owned, leased, or rented premises, is
interconnected and operates in parallel with the electric grid, and
is sized to offset part or all of the eligible biogas digester
customer-generator's own electrical requirements.
(ii) Is the recipient of local, state, or federal funds, or who
self-finances pilot projects designed to encourage the development of
eligible biogas digester electrical generating facilities.
(3) "Eligible biogas digester electrical generating facility"
means a generating facility used to produce electricity by either a
manure methane production project or as a byproduct of the anaerobic
digestion of bio-solids and animal waste.
(4) "Net energy metering" means measuring the difference between
the electricity supplied through the electric grid and the difference
between the electricity generated by an eligible biogas digester
customer-generator and fed back to the electric grid over a 12-month
period as described in subdivision (e). Net energy metering shall be
accomplished using a time of use meter capable of registering the
flow of electricity in two directions. If the existing electrical
meter of an eligible biogas digester customer-generator is not
capable of measuring the flow of electricity in two directions, the
eligible biogas digester customer-generator shall be responsible for
all expenses involved in purchasing and installing a meter that is
able to measure electricity flow in two directions. If an additional
meter or meters are installed, the net energy metering calculation
shall yield a result identical to that of a time of use meter.
(c) Every electrical corporation shall, not later than 60 days
from the effective date of this section, file with the commission a
standard tariff providing for net energy metering for eligible biogas
digester customer-generators, consistent with this section. Every
electrical corporation shall make this tariff available to eligible
biogas digester customer-generators upon request, on a first come,
first serve basis, until the total cumulative rated generating
capacity used by the eligible biogas digester customer-generators
equals 5 megawatts within the service territory of the electrical
corporation. The combined statewide cumulative rated generating
capacity used by the eligible biogas digester customer-generators in
the service territories of all three electrical corporations in the
state may not exceed 15 megawatts.
(d) Each net energy metering contract or tariff shall be
identical, with respect to rate structure, all retail rate
components, and any monthly charges, to the contract or tariff to
which the same customer would be assigned if the customer was not an
eligible biogas digester customer-generator, except as set forth in
subdivision (e). Any new or additional demand charge, standby
charge, customer charge, minimum monthly charge, interconnection
charge, or other charge that would increase an eligible biogas
digester customer-generator's costs beyond those of other customers
in the rate class to which the eligible biogas digester
customer-generator would otherwise be assigned are contrary to the
intent of this legislation, and shall not form a part of net energy
metering tariffs.
(e) The net energy metering calculation shall be made by measuring
the difference between the electricity supplied to the eligible
customer-generator and the electricity generated by the eligible
customer-generator and fed back to the electric grid over a 12-month
period. The following rules shall apply to the annualized metering
calculation:
(1) The eligible biogas digester customer-generator shall, at the
end of each 12-month period following the date of final
interconnection of the eligible biogas digester customer-generator's
system with an electrical corporation, and at each anniversary date
thereafter, be billed for electricity used during that period. The
electrical corporation shall determine if the eligible biogas
digester customer-generator was a net consumer or a net producer of
electricity during that period. For purposes of determining if the
biogas digester customer-generator was a net consumer or a net
producer of electricity during that period, the electrical
corporation shall aggregate the electrical load of a dairy operation
under the same ownership, including, but not limited to, the
electrical load attributable to milking operations, milk
refrigeration, and water pumping located on property adjacent or
continuous to the dairy. Each aggregated account shall be billed and
measured according to a time of use rate schedule.
(2) At the end of each 12-month period, where the electricity
supplied during the period by the electrical corporation exceeds the
electricity generated by the eligible biogas digester
customer-generator during that same period, the eligible biogas
digester customer-generator is a net electricity consumer and the
electrical corporation shall be owed compensation for the eligible
biogas digester customer-generator's net kilowatthour consumption
over that same period. The compensation owed for the eligible biogas
digester customer-generator's consumption shall be calculated as
follows:
(A) The generation charges for any net monthly consumption of
electricity shall be calculated according to the terms of the tariff
to which the same customer would be assigned to or be eligible for if
the customer was not an eligible biogas digester customer-generator.
When those eligible biogas digester customer-generators are net
generators during any discrete time of use period, the net
kilowatthours produced shall be valued at the same price per
kilowatthour as the electrical corporation would charge for retail
kilowatthour sales for generation, exclusive of any surcharges,
during that same time of use period. If the eligible biogas digester
customer-generator's time of use electrical meter is unable to
measure the flow of electricity in two directions, paragraph (4) of
subdivision (b) shall apply. All other charges, other than
generation charges, shall be calculated in accordance with the
eligible biogas digester customer-generator's applicable tariff and
based on the total killowatthours delivered by the electrical
corporation to the eligible biogas digester customer-generator. To
the extent that charges for transmission and distribution services
are recovered through demand charges in any particular month, no
standby reservation charges shall apply in that monthly billing
cycle.
(B) The net balance of moneys owed shall be paid in accordance
with the electrical corporation's normal billing cycle.
(3) At the end of each 12-month period, where the electricity
generated by the eligible biogas digester customer-generator during
the 12-month period exceeds the electricity supplied by the
electrical corporation during that same period, the eligible biogas
digester customer-generator is a net electricity producer and the
electrical corporation shall retain any excess kilowatthours
generated during the prior 12-month period. The eligible biogas
digester customer-generator shall not be owed any compensation for
those excess kilowatthours.
(4) If an eligible biogas digester customer-generator terminates
service with the electrical corporation, the electrical corporation
shall reconcile the eligible biogas digester customer-generator's
consumption and production of electricity during any 12-month period.
(f) This section shall remain in effect only until January 1,
2006, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2006, deletes or extends
that date.